Is Bitcoin The Next Internet?

The Bank of England is comparing digital currencies like bitcoin to the technological revolution that the internet provided decades ago, suggesting that bitcoin’s fall from grace could be temporary. In its One Bank Research Agenda, the Bank of England touted the benefits that digital currencies could provide and even suggested the possibility of a BOE created cryptocurrency pegged against the pound.

A New Way To Bank

The research noted that a switch toward mobile technology was likely to continue promoting the idea of digital currency, and that it could be in the bank’s best interest to investigate how the introduction of cryptocurrencies would affect traditional banking. While the BOE is still skeptical bout the security risks associated with developing a digital currency, banking officials have not ruled out the possibility, saying that digital currencies could become the new norm for banking much like the internet replaced the way the world accessed information.

England Isn’t The Only Nation Looking In To Digital Currencies

The BOE is not the first major central bank to discuss the use of a digital currency. Greek Finance Minister Yanis Varoufakis has mentioned that the technology behind bitcoin could be effectively applied to the eurozone as a weapon against deflation. In Ecuador, the government has already introduced its own digital currency pegged to the dollar in an effort to help citizens who don’t have access to traditional banking. Economists in the US have also discussed the possibility of rolling out a government-backed digital currency as online payments become more popular.